I am facing this issue since I started using Amazon Seller Services and selling on Amazon. At the settlement date, Amazon posts the final net $$ which is reflected in QB. However, this not a correct representation as I want to record the gross sales. Moreover, inventory of what is sold from Amazon does not tally automatically with QB inventory. (I have to manually create an invoice and enter everything to account for everything correctly)
Has anyone faced this issue? Would be very grateful if someone helps me out as I have been scouring the internet for a long time to get the answers to these pressing issues!
You've come to the right place in looking for answers with recording your Amazon gross sales. I'm here to ensure you're able to track them correctly in QuickBooks Online.
How do you track your Amazon transactions in QuickBooks Online? The manner of recording your Amazon gross sales depends on the granularity you want to keep in QuickBooks Online.
If you track these sales through a connected bank account (used for your Amazon transactions), you can create a Sales receipt to record each sale. This way, you're also able to manage your inventories. Then, make sure that the funds go to the Undeposited Funds account.
When the deposit is made at the bank from Amazon, create a Make Deposit transaction manually in QuickBooks Online. Check off all sales included in that deposit, then match it to the downloaded deposit from the bank.
To create a Sales Receipt:
Go to the Create button at the top, choose Sales Receipt.
Enter necessary information.
Select Undeposited Funds from the Deposit to field.
Click Save and Close.
To make a deposit:
Go to the Create button at the top, choose Bank Deposit.
Select the bank you want to use in the Account field.
Check off those Sales Receipts you want to include.
Click Save and Close.
To match the manually created deposit into the downloaded one:
Go to Banking in the left navigation panel, then Banking.
In the For Review section, locate and open the downloaded deposit.
Click Find Match.
From the Match transactions page, filter as necessary.
Put a check mark before the deposit you've manually created.
Meanwhile, if you've integrated a third-party app to handle your Amazon transactions, I'd suggest you contact their support team. They might be able to provide alternatives in setting up the tracking of your sales transactions.
Please let me know if you have additional questions with recording your Amazon gross sales. I'll keep an eye on your response.
So as far as i understand you need to enter the Gross sale from Amazon and also tally the Inventory with Quickbooks for the items which have been sold on Amazon.
So what you need to do is Enter the Orders in QuickBooks as Sales receipts as they have already been paid and quantity has been deducted from from Amazon.
Now once you enter the Order as sales receipts the QuickBooks will automatically deduct the inventory for the items which have been posted to Quickooks. So you have matched the inventory sold on Amazon with Quickbooks.
Now regarding the Amazon settlement reports which you get in every 15 days approx you need to enter those fees as expense or paid bills because you are recording the transaction which has already happened. So if you create an expense you will be able to record the settlement fees. But the real pain is that amazon send you a large data with settlement reports and to handle that you need to have a third party application to do all this stuff. Webgility is one of them and there are others available in the market.You can check those as well.
Here's how I reconcile Amazon Seller Central with QBO:
1 - Go to Amazon Seller Central > Reports > Payments > Statement View. Select the two-week period you wish to enter information for and print it.
1.1 - In QBO create a JE template ( I named mine 'Amazon Bi-Weekly JE') that credits Product Charges (Sales) to Accounts Receivable, shipping and gift wrap credits, refunds, etc, debits the Transfer Amount to your bank account, and also debits all fees and charges. Your J/E should have a line for every line on your Amazon Statement. The last step is to credit the remainder to the Amazon Reserved Balances account.
Congratulations! Your Amazon Reserved Balances account is reconciled!
2 - Go to Amazon Seller Central > Reports > Payments >Transaction view, then copy&paste all transaction info into Excel / Google Sheet, sort by SKU, and tally the inventory total counts and $ values.
2.1 - In QBO create an Invoice template (I named mine Amazon Bi-Weekly Invoice) for customer Amazon Seller Central with a line item for every SKU as reported in step 2. These lines should reflect the quantity of each SKU and variant (and for each price point if you offer price breaks). This will allow QBO to accurately adjust Inventory and FIFO for all SKUs.
Congratulations! Your inventory is reconciled!
3 - In QBO Receive Payment, apply the credit you created in step 1.1 to the Invoice you created in step 2.1
Congratulations! Your A/R is reconciled!
4 - In QBO online banking, match the Amazon Transfer Amount deposited to your bank account to the debit you created in step 1.1
Congratulations! Your bank deposit is cleared and ready to reconcile!
This method is a work-around. However, since Amazon provides statement data in XML perhaps the folks at QBO will someday develop an integration that automates this process. (There are 3rd party apps that offer to integrate QBO <> AMZN, but none adjust inventory (so far as I have found) rendering them practically useless. )